Tuesday, March 07, 2006

Tech Sector Review

The GHA (Hardware) has had a nice run, but there's a lot of negative divergence built into the RSI. We shouldn't be surprised if the trendline fails anytime soon.

The GSO (Software) might finally do something here.

Last week INTC and now TXN. Let's get all the bad news out so we can find a bottom soon. Despite closing on its lows, the SOX is sitting on support and closed at the bottom of its narrow channel. Tomorrow should be interesting to say the least.

The NWX ( networking sector) has tested its breakout support and should bounce tomorrow.

The GIN (Internet sector) is still in trouble here and with GOOG's never ending Finance woes continually in the news, it will likely head for the 200 day MA in the coming days.

The NBI (Biotech sector) is coming back to retest its breakout gap support in an orderly fashion.